Prosecutors Charge 8 in California Workers’ Comp Kickback Scheme

Eight people are facing federal charges in San Diego, Calif. in what prosecutors call a kickback scheme that involved tens of thousands of dollars in bribes and $25 million in improper workers’ compensation claims.

U.S. Attorney Laura Duffy said this week that the indictments are the first in a wave of charges targeting workers’ comp fraud.

Authorities arrested five people Tuesday, including a radiologist and a chiropractor. Six companies are also charged.

The FBI says the scheme resulted in overprescribed services, higher prices and unfair competition. Duffy says patients were unwitting.